Symantec Drops 11% After Weak Q3 Outlook
Symantec (NASDAQ: SYMC) beat analyst expectations for the second quarter, but its Q3 outlook has inspired investors to take a hike.
The company reported a Q2 EPS of $0.50 versus the Street estimate of $0.44. Earnings per share were up 11 percent from the year-ago period.
Revenue arrived at $1.64 billion versus the Wall Street estimate of $1.69 billion. Sales were down four percent year-over-year.
"Since announcing our strategy in January, we made significant changes that will help us become more successful at delivering value to customers and partners. We've reallocated resources to develop new integrated offerings, split the sales organization into renewals and new business teams, and simplified our management structure," Steve Bennett, President and CEO of Symantec, said in a company release.
"While this was a challenging quarter in our transition year, we expect our actions to translate into growth. We remain committed to our FY15-FY17 targets and are confident that we are on the right track."
Symantec's growth may have impressed Wall Street if it weren't for the fact that the company has low expectations for tomorrow.
The firm anticipates a Q3 EPS between $0.41 and $0.43 versus the Wall Street estimate of $0.51.
Symantec's sales estimates are also lower than what Wall Street expected. The company believes it will report sales between $1.63 billion and $1.67 billion. Wall Street expected sales to arrive at $1.79 billion.
Consequently, Symantec is down more than 11 percent in after hours trading.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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